Last week, leading companies from the fashion, retail, and technology sectors gathered together in Brooklyn, New York at The Lead Innovation Summit. The event aimed to bring together the industry's top retailers, thinkers, and changemakers. This year’s summit was an exciting one, focusing on digital native brands and how they’re transforming the shopping experience in 2019. The event featured sessions entitled “Human Meets Machine to Create the New Customer Experience,” “AI & Commerce Tech,” and “Fashion Loves Algorithms,” among others around the future of retail in our digitally focused world.
After winning a spot on the The Leading 100 last month - a list that recognizes break-out technology start-ups driving innovation in the industry - Forter’s CEO and Co-Founder Michael Reitblat, was asked to give a “Vision Talk” on the keynote stage.
Michael reiterated one of the main themes of this year’s conference - the shifting nature of e-commerce from a transactional model to a relationship model, one in which customers expect a streamlined, personalized, and instantaneous experience. Half of Americans agree they’re less likely to buy something online if the entire checkout process takes longer than half a minute. While simultaneously championing the customer experience, Michael noted another important challenge that touches retailers across the market - the rising threat and complexity of online fraud. Michael explained that in addition to $4B in operational costs and $20B in actual fraud losses, fraudsters also cost the industry around $330B in lost revenue due to the fear of fraud and false positives. Fraudsters are also growing more sophisticated and specialized - leveraging larger and more problematic fraud attacks. Forter’s Sixth Annual Fraud Attack Index reported a 26% increase in fraud rings from 2017 to 2018. These fraudsters know they can do more damage when working together, using each individual’s expertise to pinpoint specific vulnerabilities in the customer shopping journey that they can exploit. Between balancing customer experience and trying to minimize fraud, retailers have their work cut out for them.
Check out this snippet from Michael’s keynote speech to hear how legacy fraud prevention solutions stumble to beat today’s sophisticated fraudsters.